Putting together your collection took years of investing and effort just to build the perfect collection. While homeowners insurance works for everyday, easily replaced personal property, it usually doesn’t cover your more expensive prized possessions. Having a collections insurance policy in place will help you to build your collection back up in the event of a loss to one item or your whole collection.
Collection insurance is an essential form of insurance for anyone with a collection of valuables they care about. You collect it, we protect it!
What Is Collection Insurance?
Collection insurance is designed to protect your valuables and can provide broader coverage. You can purchase collection insurance for almost anything including:
- Comic Books
- Fine art
- Sports memorabilia
A standard home insurance policy includes personal property coverage for a wide range of items. Typically, the amount of personal property coverage you get is a percentage of your dwelling coverage.
However, most insurers limit the amount of money they’ll pay to repair or replace certain types of personal property. For instance, the provider may only pay up to $1,500 for stolen jewelry or $2,500 for silverware. The value of collections such as model trains, stamps, and wine often exceeds the limits of a standard home insurance policy. This is where the value and importance of collection insurance come in.
How Does Collection Insurance Work?
Collection insurance offers benefits that most standard home insurance policies won’t cover. One of the key factors is agreed value.
Agreed value coverage pays a set amount you and the insurer agree upon when you purchase a policy. The agreed value is determined based on the condition of the items, their special features, the rarity of the collection, and industry guidelines. This usually does not consider the depreciation or rise in the value of the items over time. This agreed-upon value is set in stone in most agreements but can be revisited periodically. Collection insurance is relatively inexpensive, but the annual premium can depend on the type of collectibles you insure.
Speak With Atlas Insurance Agency About Insuring Your Collection
If you have any type of valuable collection that you appreciate and treasure, collection insurance is a necessity. Reach out today to learn more about the collection insurance plan that is right for you. Call the Atlas Insurance Agency team at (808) 400-6680 or request a quote online to learn more.